Search
 

Pension De-Risking is Double-Edged Sword for PBGC (Business Insurance)

As companies unload pension obligations, federal guarantor sees premium income cut along with risk exposure.

As companies move pension risk off of their balance sheets, whether by buying annuities for retirees, as Verizon announced recently that it plans to do, or offering plan participants lump sums, their efforts have two effects on the U.S. Pension Benefit Guaranty Corp. (PBGC), according to an article in Business Insurance.

The lessening in companies’ pension obligations reduces the premiums companies owe to the PBGC, thus undermining its finances. (Companies currently pay the PBGC $35 per plan participant, which will rise to $49 per participation by 2014.) On the other hand, the PBGC’s exposure to pension risk is lessened.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Treasury and Risk

Treasury and Risk

Treasury and Risk Staff Writers

More from this author

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.